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Would you explain these figures to me please?
Rusty190
Posts: 246 Forumite
in Cutting tax
I've recently received a tax code notice letter from HMRC.
I am a retired, basic rate tax payer.
The section that is confusing me is a bit that says "estimated tax you owe this year".
It states:
"Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £16.60.
So that you pay the right tax for the year, we have included an adjustment to reduce your tax-free allowance by £252.00 to collect the £16.60 tax in equal instalments from now on by increasing the tax deducted from your pension so that the £16.60 is paid by 5th April 2024".
I've tried every permutation known to man (and woman!) and cannot figure out how paying 20p for every pound x 252 will result in £16.60.
Would someone please explain?
Thank you.
I am a retired, basic rate tax payer.
The section that is confusing me is a bit that says "estimated tax you owe this year".
It states:
"Due to an in year adjustment to your tax code(s) we think that you will owe HMRC £16.60.
So that you pay the right tax for the year, we have included an adjustment to reduce your tax-free allowance by £252.00 to collect the £16.60 tax in equal instalments from now on by increasing the tax deducted from your pension so that the £16.60 is paid by 5th April 2024".
I've tried every permutation known to man (and woman!) and cannot figure out how paying 20p for every pound x 252 will result in £16.60.
Would someone please explain?
Thank you.
0
Comments
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That reduction in tax code would result in a £50.40 repayment over a full year, I,e, £4.20 per month. So in the remaining 4 months of the tax year they will get 4 x £4.20, i,e, £16.80 .3
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